Most markets for energy have particularities due to physical, geological, geographical, and technical properties of the energy source traded, making them deviate from the idealized economic model. Identify and explain two of these particularities.
Most markets for energy have particularities due to physical, geological, geographical, and technical properties of the energy source traded, making them deviate from the idealized economic model. Identify and explain two of these particularities.
Energy economics as a distinct subject of economics wouldn't be necessary if the idealized model of atomistic competition properly represented the energy markets. Energy economists would only be responsible for gathering and analyzing information about the energy market using basic economic principles. Energy economics, however, involves much more than just the simple gathering and statistical analysis of market data. The majority of energy markets are distinctive because of the physical, geological, geographical, and technological characteristics of the traded energy source, diverting from the conventional economic model.
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